VZCZCXYZ0011
PP RUEHWEB

DE RUEHTV #0121/01 0141551
ZNR UUUUU ZZH
P 141551Z JAN 08
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 4994
INFO RUEAIIA/CIA WASHDC
RUCPDOC/USDOC WASHDC
RUEKJCS/SECDEF WASHDC
RUCNFB/FBI WASHDC
RHMFIUU/HQ BICE INTEL WASHINGTON DC

UNCLAS TEL AVIV 000121 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IS
SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 PRE-LICENSE CHECK 
ON APPLICATION 730003744 
 
REF: A. 07 STATE 144058 
     ¶B. 07 TEL AVIV 02854 
 
¶1. (SBU) Acting on instructions in ref A, Embassy Blue 
Lantern officer and senior commercial specialist visited 
Astronautics C.A., Ltd.'s office in Petah Tikva, Israel on 
January 14 and met with Ground Systems and Business 
Development Manager Eli Avraham to discuss the proposed 
transaction covered by export license application number 
¶730003744.  In responding to emboffs' questions, Avraham said 
the following in the course of the discussion: 
 
A) Astronautics C.A. intends to use the T-16 and T-24 Vehicle 
Reference Units (VRUs) in order to test new software that it 
is developing.  The VRUs will interface with the new software 
and 12.1-inch, 15-inch and 20-inch Control and Display Units 
(CDUs) to enhance the software's capability.  The 12-inch CDU 
includes a new processor and provides better resolution and 
so requires new software.  Astronautics C.A. wants to 
incorporate digital maps into their Inertial Navigation 
Systems (INSs).  (NOTE:  Copies of pamphlets on these systems 
have been sent by FAX to PM/DTCC at 202-261-8198.) 
 
B) The T-16 and T-24 VRUs are normally incorporated into 
Inertial Navigation Systems (INSs) for land systems, 
including armored personnel carriers (APCs) and trucks.  They 
can also be used in navigation and aiming systems for the 
M-109 howitzer.  The T-24 VRU is also used on the 105 mm 
L-119 light gun produced by General Dynamics Santa Barbara 
Systems.  Avraham noted that the T-16 VRU is less accurate 
than the T-24 VRU.  Kearfott is also developing a new T-18 
VRU that is more accurate than the T-16 VRU and less accurate 
than the T-24 VRU.  According to Avraham, it will be easier 
for Kearfott to obtain export licenses for the T-18 VRU. 
 
C) Astronautics in the U.S. applied for the temporary export 
licenses for the T-16 and T-24 VRUs because Astronautics C.A. 
in Israel only needs the VRUs temporarily, and because there 
is no defined end-user for the units.  They plan to return 
the VRUs within four years, unless the temporary export 
licenses are renewed, in which case they will hold onto them 
for the duration of the licenses. 
 
D) Astronautics C.A. has not yet defined clients for the its 
new CDUs.  Kearfott and Astronautics in the U.S. usually 
handle the marketing and will apply for the appropriate U.S. 
and Israeli export licenses once purchasers are identified. 
Astronautics C.A. exports some of its displays to Spain.  In 
response to Blue Lantern officer's question, Avraham stated 
clearly that Astronautics C.A. does not deal with entities 
located in countries that are subject to arms embargoes by 
the U.S. and/or the United Nations. 
 
¶2. (SBU) Providing an overview of the company for the senior 
commercial specialist's information, Avraham repeated in 
general information about the company that was reported in 
Ref B: 
 
A) Astronautics C.A. Ltd. is a subsidiary fully-owned by 
Astronautics C.A. of America, which is located in Milwaukee, 
Wisconsin.  The Israeli subsidiary was founded in 1971.  Its 
general manager is David Ronen.  It has 110 employees, over 
40 percent of which are engineers.  It does business with 
many international partners, including Boeing, Lockheed 
Martin, Bell Helicopter/TEXTRON, General Dynamics Santa 
Barbara, Aeromacchi, the Turkish Navy and Air Force, the 
Royal Thai Army, and Singapore Technologies. The company has 
three divisions:  Airborne Systems, Land Systems and Naval 
Systems.  It focuses mainly on displays for airborne systems, 
but also produces displays and instruments for ground and 
naval systems, air data computers, and digital maps.  It 
received an award from Boeing for its co-production with 
Kaiser Electronics on the F-15I displays program.  It is 
providing maintenance for the Royal Thai Army's tanks, and 
recently upgraded the display systems for Austria and 
Switzerland's M-109 self-propelled howitzers. 
 
B) All of the company's employees are vetted by the Israeli 
MOD and have to undergo some form of a background check. 
Astronautics C.A. Ltd.'s projects are classified at different 
levels, with most of them being unclassified.  Employees 
working on specific projects have to have the appropriate 
level of clearance.  As the Ground Systems Manager, Avraham 
has also been responsible for the company's security for the 
last two years.  Controlled items cannot be taken out of the 
company's secure warehouse without Avraham's approval. 
Avraham said that the Israeli MOD conducts audits of the 
 
company's security practices once every three months. 
Avraham said that the T-16 and T-24 VRUs will be stored in 
the secure warehouse and only operated under secure 
conditions in keeping with their controlled status. 
 
C) Astronautics C.A. of America also operates a factory in 
Mexico, and has software engineers working for it in Russia 
who test software manufactured in the U.S. 
 
¶3. (SBU) Avraham noted that Astronautics C.A. in Israel 
recently developed the Electronic Flight Bag (EFB) -- Class 2 
and Class 3 -- for commercial and military aviation 
applications.  It received Federal Aviation Administration 
(FAA) approval for the Class 2 EFB without any problems, but 
is finding it difficult to obtain FAA approval for the Class 
3 EFB.  Avraham explained that the EFB is a computer that is 
divided into two portions -- a 2-cm thick display, and a 
computer that can be located elsewhere on the vessel housing 
the EFB.  Avraham said that it is difficult to get the FAA 
approval for the Class 3 EFB because it affords two-way 
communication, and FAA is reportedly concerned that the 
two-way communication may affect aircraft safety. 
 
¶4. (SBU) Based on the site visit and emboffs' discussion with 
Avraham, emboffs believe that the transaction proposed in 
export license application number 730003744 is legitimate, 
and recommend approval of the export license. 
 
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JONES